Avoiding probate with an oil and gas well

[winbatchguru]

What is the name of your state (only U.S. law)? I live in Michigan but the well is in Ohio. When my dad died he owned royalty rights in an oil and gas well. He would get a small check every few months or so. When I went to get it transferred to my ownership, I had to go through probate an spend thousands. It was not worth it. I don't want my kids to go through that. How can I have them avoid this when I die? Thanks in advance for any help.

 

[HomeGuru]

What is the name of your state (only U.S. law)? I live in Michigan but the well is in Ohio. When my dad died he owned royalty rights in an oil and gas well. He would get a small check every few months or so. When I went to get it transferred to my ownership, I had to go through probate an spend thousands. It was not worth it. I don't want my kids to go through that. How can I have them avoid this when I die? Thanks in advance for any help.

**A: place the asset in a trust of some kind.

 

[Kiawah]

See if you can find a cash buyer for the rights, and convert it to cash now. That annuity stream of future revenue, has a net present value discounted into todays cash dollars. Similar in effect to a never ending home mortgage. A bank loans you money now, based on a revenue stream that you will pay them back x per month, for y months.

 

[Dandy Don]

Were there other assets in the estate that also required probate? What is the value of these oil and gas royalties? It is misleading to say that probate costs thousands of dollars, when in your particular situation, if the only assets to be handled in the future are the royalties, then a smaller, simplified and very inexpensive probate procedure can efficiently handle this matter.